The sell-off continued in Cattle futures on Thursday, less dramatically than the day before, with sharply lower grain prices tempering the pullback in Feeder Cattle.
Live Cattle futures closed an average of $1.16 lower (75¢ to $1.45 lower).
Feeder Cattle futures closed an average of 44¢ lower across a broad range (7¢ to $1.10 lower).
There weren’t enough cash fed cattle trades to trend on Thursday, but those reported at $116/cwt. on a live basis were steady with the highs established earlier in the week.
Choice boxed beef cutout value was $1.03 lower Thursday afternoon at $200.63/cwt. Select was 42¢ lower at $196.19. The Choice-Select spread was $4.44, the narrowest since March.
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Major U.S. financial indices closed sharply lower on Thursday—the steepest decline since May, according to analysts—pressured by mounting tensions with North Korea on the one hand and a rare disappointment, in recent terms, in tech stocks.
The Dow Jones Industrial Average closed 204 points lower. The S&P 500 closed 35 points lower. The NASDAQ closed 135 points lower.
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World Agricultural Supply and Demand Estimates (WASDE) increased forecast total meat production in 2017 on increased commercial beef (+0.8%) and broiler production.
“The increase in beef production reflects relatively large cattle placements in the second quarter, which will likely impact fourth quarter cattle slaughter,” say WASDE analysts. “For 2018, the beef production forecast is raised from the previous month, as expected higher placements in late 2017 and early 2018 result in higher steer and heifer slaughter.”
WASDE reduced estimated fed cattle prices for the remainder of this year and for 2018, based on weakened current prices and larger expected supplies. Fed cattle prices are estimated $1-$3 lower than the previous month at $120-$122/cwt. for the year; third quarter projected at $113-$117 and fourth quarter projected at $110-$116. Prices for next year were estimated $1-$2 lower than the previous month at $112-$121.